Newcastle United‘s chief commercial officer Peter Silverstone says the club’s much-anticipated stadium call will “start with the fans” – before admitting they face an “unprecedented challenge” in trying to catch up with the financial resources available to some of their Premier League rivals.
In a week when all of the club’s key powerbrokers, including chairman Yasir Al-Rumayyan and a high-powered delegation from majority owners the Public Investment Fund (PIF), met in Northumberland to discuss the stadium and Newcastle’s future plans it was Silverstone who broke ranks among the club’s board as he spoke on a panel at the Financial Times‘ Business of Football Summit.
While the much-awaited decision on what to do about St James’ Park is not believed to be imminent – “relatively soon” was the timescale Silverstone mentioned after the club said a call would be in made in “early 2025” last year – two proposals now have flesh on the bone after a lengthy due diligence process.
One is a new build with a capacity of around 68,000, constructed close to the current St James’ Park site, while on the other a possible revamp of the existing stadium which could take it closer to 65,000 seats has been investigated.
It is a neat summary of the club’s current status: tantalising potential but a current reality that feels much more grounded. There is a distance to travel on and off-the-pitch to become contenders and the current inconsistency on the pitch, when they can veer from ordinary to excellent within the space of 90 minutes, is a metaphor for the uncertainty around their future direction.
As the man charged with leading their commercial growth Silverstone has a crucial role. To put it simply: in the era of Profitability and Sustainability Rules (PSR) the only way the club can spend more money on players is by securing lucrative sponsorships. The buck ultimately stops with him if progress on that front slows down.
Here’s what we learned from his comments during a 40-minute panel at the FT event.
Stadium call “starts with the fans”
For those after a definitive update, the wait goes on. But there was less strident talk here about moving from St James’ Park than there was when Brad Miller – the club’s chief operating officer – suggested it would double revenue in an instant.
In reality the decision now lies with PIF, who were briefed by Miller and other board members on Monday about potential options and the preferences of those on the ground. The uncertainty about where the Saudi owners go next perhaps explains why Newcastle officials are still choosing their words carefully. PIF are the ones who decide how all of this is funded.
But still, it was nice to hear fans mentioned in a stadium debate that has been largely dominated by Newcastle’s ongoing tussle with PSR and the impact that has had on a squad that has not been strengthened for three transfer windows.
The perception on Tyneside is that the financial fair play rules have put the club in a straitjacket, with spending having to slow to comply with regulations around rolling losses. It’s difficult to see a way out of that without radical improvements off-the-field and St James’ Park, for all its history and significance, isn’t delivering the sort of revenue streams that more modern arenas are.
But Silverstone framed things slightly differently on Thursday, insisting that the club’s starting point for making a decision was meeting the excess demand for tickets that exists weekly at Newcastle.
“I wouldn’t say (the stadium call) is a dilemma, it’s an opportunity. That opportunity is to meet demand,” he said.
“Richard Masters talked about the Premier League having an audience of 1.4billion. We have the interest and audience of a very passionate city. We are a one club city and therefore we fortunately have an over demand for our stadium currently so we need to look at ways of both satisfying that and allowing as many fans to come in and enjoy the atmosphere of Newcastle and watch their team and then obviously, as everyone has talked about, try and maximise the value in return for ownership.”
He said no decisions have been made yet and, referencing an earlier presentation by Populous managing director Christopher Lee on the future of stadia which had featured some jaw-dropping artists impressions of upcoming projects, said the club were “not yet at that stage”.
“We’re at that point where we’re deciding ‘Is it best to renovate and re-invigorate St James’ Park’ – which is renowned as one of the most atmospheric stadiums in the country – or build a new stadium as these projects have shown and other clubs in the Premier League have done.
“That is a decision which will be made relatively soon. What’s clear is we need to satisfy that demand. Every week we have a very intense fanbase which is determined to come and watch Newcastle but can’t.
“So you start with the fans and how we can service most of them and then look into what’s the best option from that.”
PIF are “extremely ambitious”
For all the talk of a long-term project, there is frustration at Newcastle at the pace of change.
Some of that is due to the regulations, which prohibit excessive spending. But PIF’s methodical approach is at odds with their desire to disrupt in other sports like golf and in their own Saudi Pro League. Sources consistently point out that they see Newcastle as an investment rather than a vanity project and that is why big decisions are considered and there needs to be a strategic approach.
Silverstone’s interpretation tallies with that. Newcastle are still in a “growth” phase, he points out – making reference to a multi-million pound investment in the STACK fanzone which has outstripped revenue forecasts in its first few months.
“I’m in a fortunate position, we have an ownership group in the PIF and Reuben family who are not only extremely well-funded but also extremely ambitious for the club in the long-term so we have been investing, whether that’s in a fan zone outside the stadium which has created double digit (increases) in revenue in a year (or) investing in a retail business. We’re in the build phase, we’re investing to build and grow,” he said.
“Why are we investing? To meet the ambition of the ownership group and fanbase but also we need to generate more revenue to invest in effectively what everyone is buying – the talent on the pitch. Both in women’s and the men’s game we’re investing hugely but (we) are just trying to build at the moment.”
Newcastle face “unprecedented challenge”
Newcastle’s last recorded commercial revenue (for the 2022/23 season) was £46million. Manchester United’s was more than £300million. That simple comparison is why the club has set “relentless” targets for growth and why they face what Silverstone branded an “unprecedented” objective in the modern Premier League.
“The challenge we have – or the opportunity we have – is relentless,” he said.
“It doesn’t matter how much we’ve grown over the last two years, to catch some of the clubs who are way ahead of us we have to keep growing at that double digit growth rate which is unprecedented in the Premier League in this PSR era.”
With no ‘cheat code’ for beating the system – PSR is set to be replaced by squad cost controls which place an even greater emphasis on revenue in 2026 – it is the only way they can invest heavily on the pitch.
A hint on pricing plan
Newcastle are set to unveil new season ticket prices and a new pricing structure for supporters whose long-term, ten-year deals are up in the next few weeks. Given the focus on prices throughout the Premier League it is a potential flashpoint for supporters.
Silverstone though said Newcastle were not considering dynamic pricing – where the cost is put up to reflect demand – and said the need for more revenue was being “balanced by the fact Newcastle is a community club”.
Encouraging noises, at least.
Newcastle keep their powder dry on PSR
There was no bite on PSR or associated parties transactions, two huge issues that have an impact on Newcastle. That feels like a consistent strategy now from those at the top of the club.
While Manchester City’s lawyers are poking holes in the legislation – with a big decision on the future of APTs that could open the door for more lucrative sponsorship deals for Newcastle in the future – the Magpies aren’t kicking up much of a fuss.
Whether that situation changes in the future – and some inside the club believe it could – is for another day. For now, Silverstone seems happy to reflect Newcastle’s desire not to spoil for a fight.
“I don’t see the focus on Newcastle over any of the 19 clubs,” he said.
“We all have to work within these rules and maximise opportunities in our own ways. We’re continuing to do that.”
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